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Labour Department
- FOCUS ON HUMAN CAPABILITY
The Labour Department's briefing papers say that paid work is the key to economic independence and social participation. The papers also argue that the labour market works well for most of the people, most of the time. However, the department concedes that there are regions and groups for which labour market adjustment may be slow or incomplete, representing some "special challenges".NZ's unemployment rate is currently 6.8% and is expected to decline steadily to under 6% in 2002. The department: "However, unemployment is expected to remain concentrated in certain regions, certain ethnic groups, certain age groups, and the low skilled..."
The department also says that improving the speed with which the market adjusts to change requires an integrated view of the policies affecting capacity, opportunity and the matching process.
- The Labour Department says that there are two major concerns facing any
government: how to raise potential growth in the economy; and, how to deal with the persistence of
significant groups within the community missing out from participation and economic benefits.
These issues have traditionally been dealt with separately under economic/business policy (in relation to economic growth issues) and social policy (in relation to distribution issues). The department notes that this has driven successive governments into separate analysis of these issues rather than looking at NZ's human capability as a totality.
- The department has developed the Human Capability Framework (HCF) which provides
a systemic way of thinking about multiple social and economic outcomes. The briefing
papers explain this framework to incoming ministers, and recommend that using this policy
framework can help "maximise human capability and enable the government to integrate social and
economic goals".
The department: "The HCF is a way of providing an integrated view of key economic and social objectives, and of understanding the role of the labour market in understanding them. It emphasises the necessity to consider the factors that influence labour market outcomes in an integrated way. Focussing on any one aspect, to the neglect of others, reduces the chance of achieving the goals sought. Looking at the overall system allows focus on the areas where the greatest barriers exist, and to make changes which reinforce each other..."
- LABOUR DEPT ON WINZ
The Labour Department's briefing papers say that Winz is achieving "mixed to unsatisfactory" results in putting people into work, particularly for Maori, and those unemployed for six months or more. The papers warn that the Winz first quarter results for the 1999/2000 year reinforce the Labour Department's concern that the underlying reasons behind Winz's poor performance might not just be transitional.Winz was set up in October 1998 as a "one-stop-shop" for beneficiaries and job seekers, and now contains the NZ Employment Service, the Community Employment Group and Local Employment Co-ordination, which were previously part of the Labour Department.
- One of Winz's key goals is to focus on minimising the duration of unemployment with
an emphasis on long-term unemployed and Maori. But the Labour Department's papers show
that Winz did not meet expectations on reducing the percentage of Maori on the
unemployment register the percentage increased over the 1998/99 year.
Winz was also substantially (39%) below the annual target for "stable employment outcomes" (where a person gets a full-time or part-time job and stays off the register for at least three months) for all clients unemployed for six months or more.
Winz did exceed expectations in its target for managing levels of unemployment for people unemployed for more than four years, and it met its target for managing levels of unemployment for those unemployed for two years or more.
- The Labour Department says that competitive contracting to alternative providers of
employment-related goods and services has the potential to increase the responsiveness of
Winz, particularly for disadvantaged groups. It says that contracting would also enhance
monitoring through clearer performance benchmarks, and it recommends that these options should be
investigated further, possibly through pilot schemes.
- A COMMUNITY EMPLOYMENT APPROACH
The Labour Department argues that reducing disparities for disadvantaged groups in the labour market requires solutions that are appropriate, effective and responsive to the needs of these groups. It recommends a "community development" approach to the design and delivery of employment initiatives.The department: "Given the localised nature of the problem, an approach that focuses on the community as a whole is an option worth pursuing further. Community employment approaches recognise that for some groups, with ethnic, social or cultural links, developing a sustainable community may be more likely to provide long-term opportunities than will a series of initiatives targeted at individuals..."
- The broad objectives of a community employment approach involves strategies which;
— improve the quality of life and encourage social participation.
— increase community capacity to develop solutions to local problems and act on local opportunities, and mobilise community participation. - The department says that the key point about a community employment approach is that
it involves a "partnership" between government and local communities: "This is critical to
the ultimate outcome of sustainable communities. It is essential that the community `owns' the
problem and the solutions to it"
The department recommends several role models to draw on in order to further develop the concept of community employment initiatives. These include Winz's community employment functions (downgraded from a separate agency, last year), the various British social inclusion strategies (such as the Scottish Enterprise Agency's social inclusion projects) and the US Jobs-Plus Community Revitalisation Initiative for Public Housing Families.
- TRAINING THAT LEADS TO TODAY'S JOBS
The Labour Department's papers also reinforce that training is an important component of the menu of assistance available to move people into employment. It notes that the vast majority of those who have been unemployed for a long time have very low skill levels.The Training Opportunities Programme (TOP), administered by Skill NZ, is the largest source of government-funded training for the unemployed ... and the department says that it is essential that TOP and other active labour market measures reinforce each other.
The department: "The international debate has tended to assume that present levels of labour force training are not optimal. This may not be true for New Zealand. A recent report comparing 11 OECD countries found that 46% of NZ'ers aged 25-64 received education or training in the 1994/95 year, compared to an average of 36% in the other countries studied. Similar relativities arise for different demographic groups, industries and educational levels. There remains room for improvement in terms of access to training by some groups..."
"However, it is more likely that we need to improve the quality and appropriateness of training. Whilst some people may receive a lot of education, it may not help them in getting jobs in growth areas, or in establishing their own businesses.
"For example, firm-based training assistance is delivered through Industry Training Organisations (ITOs) and Skill NZ. Whilst the scope and flexibility of training has improved considerably since the days of apprenticeship training, ITOs still tend to be focussed on low growth areas, and may be inadvertently contributing to the development of skills with a limited future in the knowledge economy"
Sources Department of Labour Briefing Papers to Minister of Social Services and Employment December 1999, available on the internet;
The Dominion 11 January 2000 "Department wants new approach to joblessness" by NZPA
The Daily News 24 December 1999 "Mixed results for Winz on job front" by NZPA
The full version of this Briefing Paper to the Incoming Minister is available to the public on the internet.
type: Acrobat Reader (.pdf) file
internet link: http://www.dol.govt.nz/about/publications/whole%20bim.pdf
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— from the briefing papers
from The Jobs Letter No.115 / 17 January 2000
